Saskatchewan brokers gear up for change

As Saskatchewan’s brokers joined for their annual conference recently, proposed changes to rate classifications by Saskatchewan Government Insurance (SGI) were the hot topic for discussion. Prior to the meeting, SGI announced plans to reclassify light commercial vehicles by removing the $15,000 damage cap, in essence removing the distinction between commercial and private vehicles. The Insurance Brokers Association of Saskatchewan (IBAS) voiced concerns that the proposal would force private insurers out of the province by eliminating the need for extension coverage for LCVs. In a recent IBAS newsletter, government liaison committee chair Larry Kozakevich wrote, “IBAS is concerned that a loss of broker revenue will result year after year from the proposed change.” From a consumer standpoint, “the proposed changes would eliminate the flexibility motorists enjoy, including the option to declare the value of their vehicle based on age and condition”.

Incoming IBAS president Murray Tait said the association has “had several discussions with SGI” over the change. Although he was reluctant to comment while the matter is still under discussion, he did admit “we have serious concerns” about the proposal.

In other legislative news, IBAS recently conducted a review of the province’s insurance act and is engaged in ongoing discussions with SGI over review of the act. As well, IBAS members met with the auto rate review panel and attended meetings there prior to the panel’s decision not to grant SGI’s requested rate increase. The increase would have seen basic auto rates rise an average of 2%, but the panel recommended the government institute smaller increases, noting that the public insurer has a mandate to remain revenue neutral.

With the retirement of premier Roy Romanow and the possibility of an election call, IBAS is “keeping a very close watch on the proceedings” at the provincial level, notes Tait.